Judge Rejects $12.25 Million Lyft Settlement

San Francisco, CA: A federal judge has rejected the settlement of a California labor lawsuit, finding plaintiffs’ attorneys undervalued the drivers’ claims and settled the suit for too little money. The ruling came in a California labor claim alleging Lyft drivers were misclassified as independent contractors, which deprived them of the protections and benefits given to employees. Although a preliminary settlement was reached, that settlement did not see drivers reclassified as employees, leading Teamsters and other Lyft drivers to file objections to the settlement.